Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of GUJARAT APOLLO INDUSTRIES LIMITED (âthe companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.(herein after refer to as âStandalone Ind AS Financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the Financial Position, Financial Performance including Other Comprehensive Income, Cash Flows and Changes in Equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of The Act read with relevant rules there under.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit. We have taken into account the provisions of theAct, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31st March, 2018, and its Financial performance including Other Comprehensive Income, its Cash Flows and the Changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âThe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us , we give in the Annexure A statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act read with relevant rules issued there under.
e. On the basis of the written representations received from the Directors as on 31st March 2018 taken on record by the Board of Directors, none of the Director is disqualified as on 31st March 2018 from being appointed as a Director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls ,refer to our separate report in Annexure B; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its finanacial position in the afore said financial statements; Refer notes 32 to the stand alone financial statements.
ii. In our opinion and as per the information and explanation provided to us the Company has not entered into any long-term contracts including derivatives contract, requiring provision under applicable laws or accounting standards, for material foreseeable losses.
iii. The company has no delay in transferring amount required to be transfered, to Investor Education & Protection Fund by company.
Annexure - A to the Independent Auditorsâ Report
The Annexure referred to in our report to the members of GUJARAT APOLLO INDUSTIRES LIMITED for the year ended on 31st March, 2018 we report that:
(i) a. In our opinion and according to the information and explanation given to us, the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
b. In our opinion, the fixed assets have been physically verified by the management at reasonable intervals having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
c. According to information and explanations given by management, the titledeed of immovable properties included in fixed assets is held in name of the company.
(ii) As explained to us, inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.
(iii) (a) The company has granted loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, the granting of such loans is not prejudicial to the company interest.
(b) The principal and the interest amount are repayable on demand at the discretion of the company.
(c) In respect of the said loans there are no amounts which are overdue for more than ninety days.
(iv) According to the information and explanation given to us, the company has complied with the provisions of Section 185 and 186 wherever applicable, in respect of loans, investments, guarantees and securities given by the company.
(v) The company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of cost records under sub-section (1) of section 148 of the Companies Act and prima facie the prescribed cost records have been maintained. We have however not made a detailed examination of cost records with a view to determine whether they are accurate or complete.
(vii) a. According to the information and explanations given to us the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employee''s state insurance, income tax, sales tax , service tax , duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to it. No undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at 31st March 2018, for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us ,there are no dues which have not been deposited by the company on account of disputes except for the following:
Nature of Statute |
Nature of Dispute |
For the Year |
Amount (Rs.) |
Authority |
Central Sales Tax and Commercial Tax of Gujarat |
Sales Tax |
1997-1998 |
10.35 Lacs |
Second Appellate (Hyderabad) |
Sales Tax |
2005-2008 |
110.86 Lacs |
Commissioner (Appeals) |
|
Sales Tax |
2005-2006 |
47.45 Lacs |
Joint Commissioner (Appeals) |
|
Sales Tax Sales Tax |
2009-2010 2010-2011 |
34.29 Lacs 10.68 Lacs |
Sales Tax Tribunal Joint Commissioner (Appeals) |
|
Service Tax Act |
Service Tax |
2005 -2010 |
25.03 Lacs |
Custom Excise & Service Tax (Appellate Tribunal) |
TDS |
TDS |
2007-08 to 2012-13 |
13.74 Lacs |
TDS CPC |
Total |
252.40 Lacs |
(viii) In our opinion and according to the management, the company has not defaulted in repayment of dues to banks. The Company has neither issued any debentures nor availed any loan from institutions or government.
(ix) The company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly theprovision of Clause 3(ix) of the order is not applicable to the company.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud by the company or no fraud on the company by the officers and employees of the company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remunerations has been paid or provided in accordance with the requisite approvals mandate by the provisions of Section 197 read with Schedule V of the Act.
(xii) In our Opinion, the company is not a Nidhi Company. Therefore, the provisions of paragraph 3, clause (xii) of the Order are not applicable to the company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) According to the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him referred to in section 192 of the Act.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the company.
Annexure - B to the Independent Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
To the members of
GUJARAT APOLLO INDUSTRIES LIMITED
We have audited the internal financial controls over financial reporting of Gujarat Apollo Industries Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls:
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility:
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting:
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion:
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For, DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
Date : 30.05.2018 Devang Doctor
Place : Ahmedabad Partner
Membership No. 039833
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To,
The Members of
Gujarat Apollo Industries Limited
Report on the Financial Statements
1. We have audited the accompanying standalone Financial statements of GUJARAT APOLLO INDUSTRIES LIMITED ("the company"),which comprise of the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act and the rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing issued by ICAI, as specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the standalone financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us , we give in the Annexure A a statement on the matters specified in the paragraph 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. the Balance sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. in our opinion, the aforesaid standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. on the basis of the written representations received from the Directors as on 31st March 2016 taken on record by the Board of Directors, none of the Director is disqualified as on 31st March 2016 from being appointed as a Director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure B; and
g. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements ; refer note 29 to the
ii. In our opinion and as per the information and explanation provided to us the Company has not entered into any long-term contracts including derivatives contract, requiring provision under applicable laws or accounting standards, for material foreseeable losses.
iii. There has been no delay in transferring amount, required to be transferred, to Investor Education and Protection Fund by the company.
The Annexure referred to in our report to the members of GUJARAT APOLLO INDUSTIRES LIMITED for the year ended on 31st March,2016, we report that:
(i) a. In our opinion and according to the information and explanation given to us, the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
b. In our opinion, the fixed assets have been physically verified by the management at reasonable intervals having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
c. According to information and explanations given by management, the title deed of immovable properties include in fixed assets are held in name of the company.
(ii) As explained to us, inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.
(iii) a. The company has granted loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, the granting of such loans is not prejudicial to the company interest.
b. The principal and the interest amount is repayable on demand at the discretion of the company.
c. In respect of the said loans there are no amounts which are overdue for more than ninety days.
(iv) According to the information and explanation given to us, the company has complied with the provisions of Section 185 and 186 wherever applicable, in respect of loans, investments, guarantees and securities given by the company.
(v) The company has not accepted any deposits from the public.
(vi) To the best of our knowledge and as per the opinion of cost accountants the central government has not prescribed the maintenance of cost records under section 148(1) of the Act.
(vii) a. According to the information and explanations given to us the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employee''s state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to it.
b. According to the records of the company the dues outstanding of service tax, customs duty , excise duty, sales tax, income tax on account of any disputes are as follows:
Nature of Statute |
Nature of Dispute |
For the Year |
Amount (Rs.) |
Authority |
Central Sales Tax and Commercial Tax of Gujarat |
Sales Tax |
1997-1998 |
10.35 Lacs |
Second Appellate (Hyderabad) |
Sales Tax |
2005-2008 |
110.86 Lacs |
Commissioner (Appeals) |
|
Sales Tax |
2005-2006 |
47.45 Lacs |
Joint Commissioner (Appeals) |
|
Sales Tax Sales Tax |
2009-2010 2010-2011 |
34.29 Lacs 10.68 Lacs |
Sales Tax Tribunal Joint Commissioner (Appeals) |
|
Central Excise Act 1944 |
Excise |
Duty Difference |
9.15 Lacs |
Custom Excise & Service Tax (Appellate Tribunal) |
Service Tax Act |
Service Tax |
2005 -2010 |
25.03 Lacs |
Custom Excise & Service Tax (Appellate Tribunal) |
TDS |
TDS |
2007-08 to 2012-13 |
13.74 Lacs |
TDS CPC |
Total |
|
|
261.55 Lacs |
|
(viii) In our opinion and according to the management, the company has not defaulted in repayment of dues to banks. The Company has neither issued any debentures nor availed any loan from institutions or government.
(ix) The company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly the provision of Clause 3(ix) of the order is not applicable to the company.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations give by the management, we report that no fraud by the company or no fraud on the company by the officers and employees of the company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remunerations has been paid or provided in accordance with the requisite approvals mandate by the provisions of Section 197 read with Schedule V of the Act.
(xii) In our Opinion, the company is not a Nidhi Company. Therefore, the provisions of paragraph 3, clause (xii) of the Order are not applicable to the company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partially convertible debentures during the year under review and hence not commented upon.
(xv) According to the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him referred to in section 192 of the Act.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the company.
For, DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
Date : 30.05.2016 (Vasant Patel)
Place : Ahmedabad Partner
Membership No. 044612
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial statements of
GUJARAT APOLLO INDUSTRIES LIMITED ("the company"), which comprise the
Balance Sheet as at 31 March 2015, the Profit and Loss Statement, The
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Reponsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these Standalone Financial Statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstance but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the company's
Directors, as well as evaluating the overall presentation of the
financial statement.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone
Financial Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
b) In the case of the Profit and Loss Statement, of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirement
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section 143 of the Act (hereinafter referred to as the "Order"), and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
(c) The Balance sheet, the Profit and Loss Statement and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid Standalone Financial Statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) on the basis of the written representations received from the
Directors as on 31st March 2015 , Taken on record by the Board of
Directors, we report that none of the Director is disqualified as on
31st March 2015 , from being appointed as a Director in terms of
Section 164 (2) of the Act.
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements ;
ii. In our opinion and as per the information and explanation provided
to us the Company has not entered into any long-term contracts
including derivatives contract, requiring provision under applicable
laws or accounting standards, for material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
Report under The companies (Auditor's Report) Order, 2015 (CARO 2015)
CARO 2015 Report on the Standalone financial statement of Gujarat
Apollo Industries limited for the year ended March 31, 2015 as referred
to in clause 1 of the Report on Other Legal and Regulatory
requirements:
1) In respect of Fixed assets:
a) The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals having regard to the size of
the company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
2) In respect to its Inventories:
(a) As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year. In our opinion,
the frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of stock followed
by the management are reasonable and adequate in relation to the size
of the company and the nature of the Business.
(c) The company has maintained proper records of inventory. As per
information and explanation given to us, no material discrepancies were
noticed on physical verification.
3) In respect of the loans, secured or unsecured, granted by the
company to companies, firm or other parties covered in the register
maintained under section 189 of the companies act, 2013:
a) The principal amount is repayable on demand, while the interest is
also payable on demand, both at the discretion of the company.
b) In respect of the said loan and interest thereon, there are no
overdue amounts.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with its size of the company and the nature of its
business with regard to the purchase of inventory, fixed assets and for
the sale of goods and service. During the course of our audit, we have
not observed any continuing failure to correct major weakness in such
internal control system.
5) In our opinion and according to the information and explanation
given to us, the Company has complied with the provision of section 73,
section 76 and other relevant provision of the Company Act, 2013 and
the companies (Acceptance of Deposits) Rules,2014 with regard to
deposits accepted from the member and the public. No order has been
passed by the National Company Law Tribunal or any court or any other
tribunal with regard to deposits.
6) We have been informed by the management, no cost records have been
prescribed under Section 148(1) of the companies Act, 2013 in respect
of product manufactured by the company.
7) In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including provident fund, Employees' state insurance income tax, sales
tax, wealth tax, service tax, duty of customs, value added tax, cess
and other material statutory dues have been regularly deposited with
the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid due were outstanding as at 31 March 2015 for a period of
more than six months from the date of becoming payable.
(b) Details of dues of income tax, sales tax, wealth tax, service tax,
duty of customs, duty of excise, value added tax, cess which have not
been deposited 31st march 2015 on account of any dispute are given
below.
Nature of Nature of For the
the Statute Dispute Year
Central Sales Tax and Sales Tax 1997-1998
Commercial Tax of
Sales Tax 2005-2008
Gujarat
Sales Tax 2005-2006
Sales Tax 2009-2010
Sales Tax 2010-2011
Total
Service Tax Act Service Tax 2005-2009
Total
Central Excise Act, 1944 Excise Duty Difference
Total
TDS TDS 2007-08 to 2012-13
TOTAL
Nature of the Statute Amount (Rs.) Authority
Central Sales Tax and
Commercial Tax of Gujarat 10.35 Lacs Second Appellate
(Hyderabad)
110.86 Lacs Commissioner (Appeals)
47.45 Lacs Joint Commissioner
(Appeals)
92.78 Lacs Joint Commissioner
(Appeals)
10.68 Lacs
Total 261.44 Lacs
Service Tax Act 20.51 Lacs Custom Excise & Service
Tax (Appellate Tribunal)
Total 20.51 Lacs
Central Excise Act, 1944 9.15 Lacs Custom Excise & Service
Tax (Appellate Tribunal)
Total 9.15 Lacs
TDS 25.26 Lacs TDS CPC
TOTAL 25.26 Lacs
c. According to the records of the company the amounts required to be
transferred to the Investor Education Protection Fund have been duly
transferred within time in accordance with the relevant provision of
the Companies Act, 1956 (1 of 1956) and rules made there under.
(8) The accumulated losses of the company are not more than fifty
percent of its net worth. The company has incurred cash losses during
the financial year covered by our audit and has not incurred cash
losses immediately preceding financial year.
(9) Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that company has not
defaulted in the repayment of dues to financial institution and bank.
Since the company has not issue any debenture the question of default
in repayment of due to debenture holder does not arise.
(10) According to the records of the company and the information and
explanations given By the management, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
(11) The Company has not raised new term loan during the year.
(12) In our opinion and according to the information and explanation
given to us, no fraud by the company and no material fraud on the
company has been noticed or reported during the year.
For, DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
Date : 30.05.2015 (Vasant Patel)
Place : Ahmedabad Partner
Membership No. 044612
Mar 31, 2014
1. We have audited the accompanying Financial Statements of Gujarat
Apollo Industries Limited which comprise the Balance Sheet at 31st
March 2014 ,Statement of Profit and Loss for the year ended on that
date, Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory informations,
which we have signed under reference to this report.
Management''s Reponsibility
2. The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flow of the Company in
accordance with the Accounting Standard notified under the companies
act 1956 of Inida (the Act) read with general circular 15 / 2013 dated
13th September 2013 of the ministry of Corporate Affairs in respect of
Section 133 of the Companies Act 2013. This responsibility includes the
design implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatements, whether
due to fraud or errors.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
form material misstatement.
4. An audit involves performing procedures to obtain about amounts and
disclosures in the financial statements. The procedures selected
depends on auditor''s judgement, including assessment of risk of
material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor consider
internal control relevant to company''s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2014.
b. in the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date
Report on Other Legal and Regulatory Requirement
7. As required by the Companies (Auditor''s Report) Order, 20031, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of section section 227 of the Act (hereinafter referred to as the
"Order"), and on the basis of such chekcs of the books and records of
the company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the order.
8. As required by the section 227 (3) of the Act, we report that;
a. We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b. In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books;
c. The Balance Sheet and the Statement of Profit and Loss, and Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under companies act 1956 read with the
general circular 15/2013 dated 13th September 2013 of the ministries of
corporate affairs in respect of section 133 of companies act 2013;
e. On the basis of written representation received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors, we
report that none of the director is disqualified as on March 31, 2014
from being appointed as a director in terms of section 274(1)(g) of the
Act.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 7 of our report of even date)
(i) In respect of its fixed assets;
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b. According to the information and explanations given to us, the
Company has formulated a program of verification by which, all the
assets of Company are being verified in the phased manner over a period
of three years, which in our opinion, is reasonable having regard to
the size of the Company and nature of its assets .No material
discrepancies were noticed on verification conducted during the period
as compared with the books records.
c. In our opinion the Company has disposed off substantial part of its
fixed assets through slump sale during the year, but the going concern
status of the Company is not affected.
(ii) In respect of its inventories:
a. As explained to us, inventories have been physically verified by
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b. In our opinion and according to the information and explanations
give to us, the procedures of physical verification of stocks followed
by the Management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c. In our opinion and accordingly to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
(iii) In respect of the loans, secured or unsecured granted or taken by
the company to/from: Companies, firm or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a. The Company has given interest-bearing loan to a party & interest
free loan to a party. In respect of said loans, the maximum amount
outstanding at any time during the year is Rupees 10216.66 lacs and
year-end balance is Rupees 10216.66 lacs.
b. In our opinion and according to information and explanation given to
us, the rate of interest and other terms and condition of the loans
given are not prima facie prejudicial to the interest of the company.
c. In respect of the above loan granted there is no stipulation as
regard receipt/renewal of the principal amount.
d. In respect of the loan given by the company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
e. The Company has not taken any loans secured or unsecured, from
companies, firms or other parties, covered in the register maintained
under section 301 of the companies Act, 1956. Accordingly, the
provisions of clause 4 (iii) (e) to (g) of the order are not applicable
to the company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
give to us, having regard to the explanation that certain items
purchased are of specialized nature for which suitable alternative
sources do not exist for obtaining comparative quotations, there are
adequate internal control procedure commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and with regards to the sale of goods and services. During
the course of our audit we have not observed any major weakness in the
internal control
(v) a. In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements refer to in
section 301 of the Act, have been entered in the register required to
be maintained under that section.
b. In our opinion and having regard to our comments in paragraph (iv)
above, and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956.
in respect of one of the party to whom slump sales have been made is as
per the business transfer agreement and hence not comparable. In
respect of the other transactions they have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time where such market prices are available.
(vi) In our opinion and according to the information and explanations
give to us, the Company has complied with the provisions of Section 58A
and 58AA of the Act and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. According to
the information and explanations given to us, no order under the
aforesaid Sections has been passed by the Company Law Board, National
Law Tribunal, National Law Board or Reserve Bank of India or any other
court or any other tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) According to the information and explanations given to us In
respect of statutory dues:
a. The Company is generally been regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and other material statutory
dues applicable to it.
b. No undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty and excise duty were outstanding, at the year
end for a period of more than six months from the date they become
payable.
c. Details of dues of sales tax, income tax, custom duty, wealth tax,
excise duty, service tax which have not been deposited as on 31st
March, 2014 on account of any disputes are given below;
Nature of the Statute Nature of Dispute For the Year
Central Sales Tax and Sales Tax 1997-1998
Commercial Tax Gujarat Sales Tax 2005-2008
Sales Tax 2005-2006
Sales Tax 2009-2010
Service Tax Act Service Tax 2005-2009
Central Excise Act, 1944 Excise Duty Difference
Nature of the Statute Amount (Rs.) Authority
Central Sales Tax and 10.35 Lacs Second Appellate (Hyderabad)
Commercial Tax Gujarat 110.86 Lacs Commissioner Appeals
47.45 Lacs Joint Commissioner Appeals
92.78 Lacs Joint Commissioner Appeals
Total 261.44 Lacs
Service Tax Act 20.51 Lacs Custom Excise & Service Tax
Appellate Tribunal
Total 20.51 Lacs
Central Excise Act, 1944 9.15 Lacs Custom Excise & Service Tax
Appellate Tribunal
Total 9.15 Lacs
(x) The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses during the
current financial year and immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the Balance Sheet date.
(xii) Based on our examination of the records and the information and
explanations give to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order
2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanation
given to us, the Company has not given any bank guarantee.
(xvi) In our opinion, and according to the information and explanation
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvii) According to the information and explanations given to us, and
on overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment by the Company.
(xviii) The Company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanation given to us, the
Company has not issued any debenture during the year and no outstanding
at the year end.
(xx) As informed to us, during the period covered by our audit report,
the Company has not raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true end fair view of the financial statements and as per
the information and explanations given by the management, which have
been relied upon by us, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For, DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
Date : 30.05.2014 (Vasant Patel)
Place : Mehsana Partner
Membership No. 044612
Mar 31, 2013
Report on Financial Statement
1. We have audited the accompanying Financial Statements of Gujarat
Apollo Industries Limited which comprise the Balance Sheet at 31st
March 2013, Statement of Profit and Loss for the year ended on that
date, Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory informations,
which we have signed under reference to this report.
Management''s Reponsibility
2. The Company''s Management is responsible for the preperation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flow of the Company
in accordance with the Accounting Standard referred to in section
211(3C) of the Companies Act 1956 of Indai (the "Act"). This
responsibility includes the design implementation and maintenance of
internal control relevant to the preperation and presentation of the
financial statements that give a true and fair view and are free from
material misstatements, whether due to fraud or errors.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these finincial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institue of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
form material misstatement.
4. An audit involves performing procedures to obtain about amounts and
disclosures in the financial statements. The procedures selected
depends on auditor''s judgement, including assessment of risk of
material misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor consider
internal control relevant to company''s preperation and fair
presentation of the financial statements in order to design audit
procedures that are apporpriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial
statements.
5. We belive that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explainations given to us, the accompanying financial statements
give the information required by the act in the manner so required and
give a true and fair view in confirmity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2013.
b. in the case of the statement of Profit and Loss, of the profit for
the year endend on that date; and
c. in the case of the Cash Flow Statement, of the cash flow for the
year endend on that date
Report on Other Legal and Regulatory Requirement
7. As required by the Companies (Auditor''s Report) Order, 2003'', as
amended by the Companies (Auditors Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section section 227 of the Act (hereinafter referred to as the
"Order"), and on the basis of such chekcs of the books and records of
the company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraph 4 and 5 of the order.
8. As required by the section 227 (3) of the Act, we report that;
a. We have obtained all the information and explainations which, to
the best of our knowledge and belief, were necessary for the purpose of
our audit.
b. In our opinion, proper books of account as requird by law have been
kept by the company so far as appears from our examination of those
books;
c. The Balance Sheet and the Statement of Profit and Loss, and Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referd to in section 211(3C) of the Act;
e. On the basis of written representation received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors, we
report that none of the director is diaqualified as on March 31, 2013
from being appointed as a director in terms of section 274(1)(g) of the
Act.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 7 of our report of even date)
(i) In respect of its fixed assets;
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b. According to the information and explanations given to us, the
Company has formulated a program of verification by which, all the
assets of Company are being verified in the phased manner over a period
of three years, which in our opinion, is reasonable having regard to
the size of the Company and nature of its assets .No material
discrepancies were noticed on verification conducted during the period
as compared with the books records.
c. In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii) In respect of its inventories:
a. As explained to us, inventories have been physically verified by
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b. In our opinion and according to the information and explanations
give to us, the procedures of physical verification of stocks followed
by the Management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c. In our opinion and accordingly to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
(iii) In respect of the loans, secured or unsecured granted or taken by
the company to/from: Companies, firm or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a. The Company has given interest-bearing loan to a party & interest
free loan to a party. In respect of said loans, the maximum amount
outstanding at any time during the year is Rs. 4,575.11 lacs and year-end
balance is Rs. 4,575.11 lacs.
b. In our opinion and according to information and explanation given
to us, the rate of interest and other terms and condition of the loans
given are not prima facie prejudicial to the interest of the company.
c. In respect of the above loan granted there is no stipulation as
regard receipt/renewal of the principal amount.
d. In respect of the loan given by the company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
e. The Company has not taken any loans secured or unsecured, from
companies, firms or other parties, covered in the register maintained
under section 301 of the companies Act, 1956. Accordingly, the
provisions of clause 4 (iii) (e) to (g) of the order are not applicable
to the company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
give to us, having regard to the explanation that certain items
purchased are of specialized nature for which suitable alternative
sources do not exist for obtaining comparative quotations, there are
adequate internal control procedure commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and with regards to the sale of goods and services. During
the course of our audit we have not observed any major weakness in the
internal control
(v) a. In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements refer to in
section 301 Act, have been entered in the register required to be
maintained under that section.
b. In our opinion and having regard to our comments in paragraph (iv)
above, and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time where such market prices
are available.
(vi) In our opinion and according to the information and explanations
give to us, the Company has complied with the provisions of Section 58A
and 58AA of the Act and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. According to
the information and explanations given to us, no order under the
aforesaid Sections has been passed by the Company Law Board, National
Law Tribunal, National Law Board or Reserve Bank of India or any other
court or any other tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) According to the information and explanations given to us In
respect of statutory dues:
a. The Company is generally been regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and other material
statutory dues applicable to it.
b. No undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty and excise duty were outstanding, at the year
end for a period of more than six months from the date they become
payable.
(x) The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses during the
current financial year and immediately preceding financial year.
(xi) Based on the audit procedures applied by us, and explanations
provided by the management, the company has no dues towards banks,
financial institutions or debenture holders, and hence, provisions of
clause 4(xi) of the order are not applicable to the company.
(xii) Based on our examination of the records and the information and
explanations give to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order
2003 are not applicable to the Company.
(xv) The Company has given the guarantee for loans taken by one of the
subsidiary from other bank. According to the information explanation
given to us, we are of the opinion that the terms and conditions
thereof are not prima facie prejudicial to the interest of the Company.
(xvi) The Company has not obtained any term loan during the year.
(xvii) According to the information and explanations given to us, and
on overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment by the Company and vice-versa.
(xviii) The Company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanation given to us, the
Company has not issued any debenture during the year and no outstanding
at the year end.
(xx) As informed to us, during the period covered by our audit report,
the Company has not raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true end fair view of the financial statements and as per
the information and explanations given by the management, which have
been relied upon by us, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For, Arvind A Thakkar & Co.
Firm Registration Number: 100571W
Chartered Accountants
Date : 30.05.2013 A. A. Thakkar
Place : Mehsana Sole Proprietor
Membership No. 014334
Mar 31, 2012
1. We have audited the attached Balance Sheet of GUJARAT APOLLO
INDUSTRIES LIMITED as at 31st March 2012 and also the Statement of
Profit and Loss and the Cash Flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of 'The Companies Act, 1956' of India (the
'Act') and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii. In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet, Statement Profit and Loss and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to the sub-section (3C) of Section
211 of the Companies Act, 1956;
v. On the basis of written representations received from the Directors,
as on March 31, 2012, and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 271 of the Companies Act, 1956; and in our
opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Significant Accounting Policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
b) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
(i) In respect of its fixed assets;
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) According to the information and explanations given to us, the
Company has formulated a program of verification by which, all the
assets of Company are being verified in the phased manner over a period
of three years, which in our opinion, is reasonable having regard to
the size of the Company and nature of its assets .No material
discrepancies were noticed on verification conducted during the period
as compared with the books records.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
give to us, the procedures of physical verification of stocks followed
by the Management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and accordingly to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
(iii) In respect of the loans, secured or unsecured granted or taken by
the Company to/from: Companies, firm or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
a) The Company has given interest-bearing loan to three parties &
interest free loan to one party. In respect of said loans, the maximum
amount outstanding at any time during the year is Rs. 2672.81 Lacs and
year-end balance is Rs. 2569.03 Lacs.
b) In our opinion and according to information and explanation given to
us, the rate of interest and other terms and condition of the loans
given are not prima facie prejudicial to the interest of the Company.
c) In respect of the above loan granted there is no stipulation as
regard receipt/renewal of the principal amount.
d) In respect of the loan given by the Company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
e) The Company has not taken any loans secured or unsecured, from
Companies, firms or other parties, covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the
provisions of clause 4 (iii) (e) to (g) of the order are not applicable
to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations
give to us, having regard to the explanation that certain items
purchased are of specialized nature for which suitable alternative
sources do not exist for obtaining comparative quotations, there are
adequate internal control procedure commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and with regards to the sale of goods and services. During
the course of our audit we have not observed any major weakness in the
internal control. (v) (a) In our opinion and according to the
information and explanation given to us, the particulars of contracts
or arrangements refer to in section 301 Act, have been entered in the
register required to be maintained under that section. (b) In our
opinion and having regard to our comments in paragraph (iv) above, and
according to the information and explanations given to us, transactions
made in pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 have been made
at prices which are reasonable having regard to prevailing market
prices at the relevant time where such market prices are available.
(vi) In our opinion and according to the information and explanations
give to us, the Company has complied with the provisions of Section 58A
and 58AA of the Act and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. According to
the information and explanations given to us, no order under the
aforesaid Sections has been passed by the Company Law Board, National
Law Tribunal, National Law Board or Reserve Bank of India or any other
court or any other tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) According to the information and explanations given to us In
respect of statutory dues:
(a) The Company is generally been regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty and other material
statutory dues applicable to it.
(b) No undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty and excise duty were outstanding, at the year
end for a period of more than six months from the date they become
payable.
(c) Details of dues of sales tax, income tax, custom duty, wealth tax,
excise duty, service tax which have not been deposited as on 31st
March, 2012 on account of any disputes are given below;
NATURE OF FOR THE
YEAR AMOUNT (Rs.) AUTHORITY
DISPUTE
1) Sales Tax 1997-98 10.35 Lacs Second Appellate (Hyderabad)
2) Service Tax 2005-2008 110.86 Lacs Commissioner Appeals
3) Service Tax 2005-2009 20.51 Lacs Custom Excise & Service
Tax Appellate Tribunal
4) Service Tax 2006-2009 51.62 Lacs Commissioner Appeals
5) Excise Duty
Difference 9.15 Lacs Custom Excise & Service
Tax Appellate Tribunal
(x) The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses during the
current financial year and immediately preceding financial year.
(xi) Based on the audit procedures applied by us, and explanations
provided by the management, the company has no dues towards banks,
financial institutions or debenture holders, and hence, provisions of
clause 4(xi) of the order are not applicable to the company.
(xii) Based on our examination of the records and the information and
explanations give to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
(xv) The Company has given the guarantee for loans taken by one of the
subsidiary from other bank. According to the information explanation
given to us, we are of the opinion that the terms and conditions
thereof are not prima facie prejudicial to the interest of the Company.
(xvi) The Company has not obtained any term loan during the year.
(xvii) According to the information and explanations given to us, and
on overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment by the Company and vice-versa.
(xviii) The Company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanation given to us, the
Company has not issued any debenture during the year and no outstanding
at the year end.
(xx) As informed to us, during the period covered by our audit report,
the Company has not raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true end fair view of the financial statements and as per
the information and explanations given by the management, which have
been relied upon by us, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
FOR ARVIND A THAKKAR & CO.
Chartered Accountants
Firm Reg. No. 100571W
Place : Ditasan, Mehsana A.A. THAKKAR
Dated: 11th August, 2012 Sole Proprietor
Membership No.14334
Mar 31, 2011
1. We have audited the attached Balance Sheet of GUJARAT APOLLO
INDUSTRIES LIMITED as at 31st March, 2011 and also the Profit and Loss
Account and the Cash Flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by Companies (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of 'The Companies Act, 1956' of India (the
'Act') and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii. in our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. in our opinion, the Balance Sheet, Profit and Loss and Cash Flow
Statement dealt with by this report are in compliance with the
accounting standards referred to the sub-section (3C) of Section 211 of
the Companies Act, 1956;
v. on the basis of written representations received from the directors,
as on 31st March, 2011, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
vi. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011;
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
(i) In respect of its fixed assets;
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the
Company has formulated a programme of verification by which, all the
assets of Company are being verified in the phased manner over a period
of three years, which in our opinion, is reasonable having regard to
the size of the Company and nature of its assets .No material
discrepancies were noticed on verification conducted during the period
as compared with the books records.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
give to us, the procedures of physical verification of stocks followed
by the Management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and accordingly to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
(iii) In respect of the loans, secured or unsecured granted or taken by
the company to/from:
Companies, firm or other parties covered in the register maintained
under section 301 of The Companies Act, 1956
a) The Company has given interest-bearing loan to three parties &
interest free loan to one party. In respect said loan the maximum
amount outstanding at any time during the year is Rupees 3407.39 lacs
and year- end balance is Rupees 2543.51 lacs.
b) In our opinion and according to information and explanation given to
us, terms and condition are not prima facie prejudicial to the interest
of the company.
c) The said loan was given to associate parties of the company are
repayable on demanded there is no repayment schedule.
d) In respect of the loan given by the company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
e) The Company has not taken any loan, secured or unsecured from
companies, firm or other parties covered in the register maintained
under section 301 of the companies Act, 1956.
(iv) In our opinion and according to the information and explanations
give to us, having regard to the explanation that certain items
purchased/sold are of specialized nature for which suitable alternative
sources are not readily available for obtaining comparative
quotations/prices, there are adequate internal control procedure
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for the sale of goods and services. During the course of our audit, we
have not observed any major weakness in such internal control.
(v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) To the best of our knowledge and according to the information and
explanations given to us, we are of the opinion that the transactions
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and having regard to our comments in paragraph (iv)
above, and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time where such market prices
are available.
(vi) In our opinion and according to the information and explanations
give to us, the Company has complied with the provisions of Section 58A
and 58AA of the Act and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. According to
the information and explanations given to us, no order under the
aforesaid Sections has been passed by the Company Law Board on the
Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956
for the products of the Company.
(ix) In respect of statutory dues:
(a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty and excise duty. were outstanding, at the year end for a
period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of sales tax and Service Tax which have not been deposited on
account of dispute are as under;
NATURE OF DISPUTE FOR THE YEAR AMOUNT (Rupees) AUTHORITY
1) Sales Tax 1997-98 10.35 Lacs Second Appellate
(Hyderabad)
2) Service Tax 2005-2006 & 29.78 Lacs Service Tax Appellate
2006-2007 Tribunal West zone
(Ahmedabad)
(x) The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses during the
current financial year and immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us the company has not defaulted in repayment of dues to
banks. hence, provisions of clause 4(xi) of the order are not
applicable to the company.
(xii) Based on our examination of the records and the information and
explanations give to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order.
2003 are not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
Company for loans taken by subsidiary company from banks or financial
institutions are not prima facie prejudicial to the interests of the
Company.
(xvi) The Company has not obtained any term loan during the year.
(xvii) According to the information and explanations given to us, and
on overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment by the Company and vice-versa.
(xviii) The Company has made not made any preferential allotment of
shares to parties covered in the register maintained under section 301
of the Companies Act, 1956. .
(xix) According to the information and explanation given to us, the
Company has not issued any debenture during the year and no outstanding
at the year end.
(xx) As informed to us, during the period covered by our audit report,
the Company has not raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true end fair view of the financial statements and as per
the information and explanations given by the management, which have
been relied upon by us, we report that no fraud on or by the company
has been noticed or reported during the course of our audit.
FOR, ARVIND A THAKKAR & CO.
Chartered Accountants
Firm Reg. No. 100571W
Place:Ditasan, Mehsana A.A. THAKKAR
Dated:12th August, 2011 Sole Proprietor
Membership No.14334
Mar 31, 2010
1. We have audited the attached Balance Sheet of GUJARAT APOLLO
INDUSTRIES LIMITED as at 31st March 2010 and also the Profit and Loss
Account and the Cash Flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of The Companies Act, 1956 of India (the
Act) and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraph 4 and 5 of the said order to the
extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
i. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii. in our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. in our opinion, the Balance Sheet, Profit and Loss and Cash Flow
Statement dealt with by this report Company with the accounting
standards referred to the sub-section (3C) of Section 211 of the
Companies Act, 1956;
v. on the basis of written representations received from the directors,
as on March 2010, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 271 of the Companies Act, 1956; and
vi. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March , 2010;
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) in the case of the cash flow statement, of the cash flows for the
year ended on the date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
(i) In respect of its fixed assets;
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the
Company has formulated a programme of verification by which, all the
assets of Company are being verified in the phased manner over a period
of three years, which in our opinion, is reasonable having regard to
the size of the Company and nature of its assets. No material
discrepancies were noticed on verification conducted during the period
as compared with the books records.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
(ii) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
give to us, the procedures of physical verification of stocks followed
by the Management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and accordingly to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company.
(iii) In respect of the loans, secured or unsecured granted or taken by
the company to/from:
Companies, firm or other parties covered in the register maintained
under section 301 of The Companies Act, 1956
a) The Company has given interest-bearing loan to two parties &
interest free loan to one party. In respect said loan the maximum
amount outstanding at any time during the year is Rupees 3336.33 lacs
and year- end balance is Rupees 3066.28 lacs.
b) In our opinion and according to information and explanation given to
us, terms and condition are not prima facie prejudicial to the interest
of the company.
c) The said loan was given to associate parties of the company are
repayable on demanded there is no repayment schedule.
d) In respect of the loan given by the company, the same is repayable
on demand and therefore the question of overdue amount does not arise.
e) The Company has not taken any loan, secured or unsecured from
companies, firm or other parties covered in the register maintained
under section 301 of the companies Act, 1956.
(iv) In our opinion and according to the information and explanations
give to us, having regard to the explanation that certain items
purchased are of specialized nature for which suitable alternative
sources do not exist for obtaining comparative quotations, there are
adequate internal control procedure commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and fixed assets and with regards to the sale of goods and
services. During the course of our audit we have not observed any major
weakness in the internal control.
(v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) To the best of our knowledge and according to the information and
explanations given to us, we are of the opinion that the transactions
that need to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and having regard to our comments in paragraph (iv)
above, and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time where such market prices
are available.
(vi) In our opinion and according to the information and explanations
give to us, the Company has complied with the provisions of Section 58A
and 58AA of the Act and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. According to
the information and explanations given to us, no order under the
aforesaid Sections has been passed by the Company Law Board on the
Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956
for the products of the Company.
(ix) In respect of statutory dues:
(a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty and excise duty, were outstanding, at the year end
for a period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of sales tax, income tax, custom duty, wealth tax, excise duty,
education cess which have not been deposited on account of dispute are
as under
NATURE OF DISPUTE FOR THE YEAR AMOUNT (Rupees) AUTHORITY
1) Sales Tax 1997-98 10.35 Lacs Second Appellate
(Hyderabad)
2) Service Tax 2005-2006 12.78 Lacs Service Tax
Appellate
2006-2007 Tribunal west .
zone (Ahmedabad)
(x) The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses during the
current financial year and immediately preceding financial year.
(xi) Based on the audit procedures applied by us, and explanations
provided by the management, the company has no dues towards banks,
financial institutions or debenture holders, and hence, provisions of
clause 4(xi) of the order are not applicable to the company.
(xii) Based on our examination of the records and the information and
explanations give to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order.
2003 are not applicable to the Company.
(xv) The Company has not given guarantee for loans taken by others from
banks or financial institutions.
(xvi) The Company has not obtained any term loan during the year.
(xvii) According to the information and explanations given to us, and
on overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment by the Company and vice-versa.
(xviii) During the year under consideration, the Company has made
preferential allotment of shares to parties covered in the register
maintained under section 301 of the Companies Act, 1956. In our opinion,
each of the transaction has been made at price; which are not
prejudicial to the interest of the company.
(xix) According to the information and explanation given to us, the
Company has not issued any debenture during the year and no outstanding
at the year end.
(xx) As informed to us, during the period covered by our audit report,
the Company has not raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true end fair view of the financial statements and as per
the information and explanations given by the management, which have
been relied upon by us, we report that no fraud on or by the company has
been noticed or reported during the course of our audit.
FOR, ARVIND A THAKKAR & CO.
Chartered Accountants
Firm reg. no. 100571W
Place : Ditasan, Mehsana A.A. THAKKAR
Dated: 30-07-2010 Sole Proprietor
Membership No.14334